The Federal Open Market Committee (FOMC) will hold meetings on Tuesday and Wednesday. The Federal Reserve will decide to either move ahead with its second increase to interest rates in the past year or if it will delay it once again.
There has been a plethora of both positive and negative economic data (more negative than positive) since the beginning of September. The August jobs numbers were disappointing, retail sales declined in August, manufacturing activity has slipped back into recession territory and consumer debt has gone up. These negative data points could encourage the United States central bank to hold off on a rate hike for another couple of months.
Traders do not seem to think the central bank will pull the trigger on a rate hike.
According to the CME Group FedWatch tool, there is a 12 percent chance of a rate hike. It seems investors believe a December rate hike is more plausible, with the odds spiking to just under 60 percent.
Here is the chart:
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